New Delhi, Dec. 3 -- Embassy Office Parks REIT, India's first listed REIT, said it has entered into definitive agreements to acquire a 0.3 million square feet office property located within Embassy GolfLinks Business Park in Bengaluru.
The property will be taken over from a fund managed by Singapore-based real estate investment firm Xander Group, which had bought it in 2018 from the Sanjay Ghodawat Group for about Rs 350 crore.
The asset, which is situated in the heart of Embassy GolfLinks, is fully leased to global investment major Fidelity Group.
The deal is valued at roughly Rs 852 crore ($94.3 million).
The development comes shortly after VCCircle exclusively reported that the REIT was in advanced talks to acquire the Embassy GolfLinks property named Pinehurst.
This acquisition further consolidates Embassy REIT's scale and ownership in a micro-market that continues to see strong leasing demand and premium rental growth, the trust said in a statement.
"Bengaluru continues to be India's office capital, and Embassy GolfLinks is home to some of the world's most influential technology and GCC occupiers. With a 100% leased, long-tenured asset anchored by a leading global investment firm, this acquisition further strengthens our presence in this premier micro-market," said Amit Shetty, chief executive officer, Embassy REIT. "We remain focused on disciplined expansion that delivers stronger cash flows and enhances value for our unitholders, while continuing to offer occupiers a truly world-class workplace experience."
The acquisition is subject to completion of customary conditions precedent and pre-closing actions.
PwC advised Embassy REIT on financial and tax due diligence; Trilegal handled title diligence, and S&R Associates acted as the legal counsel.
Embassy REIT owns and operates a 50.8 million sq ft portfolio across 14 office parks in Bengaluru, Mumbai, Pune, the National Capital Region (NCR) and Chennai. Its portfolio includes 40.9 million sq ft of completed operating area and houses 274 companies.
Recently, Mindspace Business Parks REIT announced the acquisition of three prime assets worth Rs 2,916 crore from sponsor K Raheja Corp. The deal covers 0.45 million sq ft at Ascent-Worli in Mumbai, a newly completed commercial tower, an office building spread across 0.1 million sq ft in Pune's Kalyani Nagar micro-market, and 0.2 million sq ft office space at The Square Avenue 98 in the BKC Annex in Mumbai's financial hub.
Published by HT Digital Content Services with permission from VC Circle.